Samsung announced record profits of $5.2b in smartphones for the second quarter of 2013 and overtook Apple as the most profitable mobile phone manufacturer.

Of all the phones sold in the Q2, Samsung accounted for 27.7 per cent of those sales.

This was on the strength of the launch of its Galaxy S4 smartphone earlier this year along with a strong portfolio of affordable entry-level Android handsets.

Apple’s market share, meanwhile, slumped to 13.1 per cent – its lowest share for three years.

Samsung’s share is now 30.4 per cent putting them at No 1 in front of second-placed Apple.

Samsung’s year on year sales have grown by 56 per cent with Apple growing 20 per cent.

Where Apple is missing out is in the cheaper, more affordable category which is seeing huge growth.

In the past, selling fewer but more expensive iPhones has kept the company’s profits high.

But if the rumours are correct Apple will be delivering a solution to this problem with a lower cost version of the iPhone 5 which is reportedly in production.

It has a rounded plastic rear panel which will be available in a number of colours while the top end device – believed to be called the iPhone 5S – will continue to be offered to customers as a premium alternative.